lzell

It is my understanding that it can be advantageous for both the investor and entrepreneur to use preferred stock in early financing deals. From the entrepreneur's perspective the common stock value will remain low.

Has anyone seen effects in practice, perhaps surrounding recruitment, of pricing common stock early for a YC (or other) deal?

Part two: Right now our company has 10M common shares, with a par value of .00001. Is there a "trick" that incubators use to keep the common stock value low when dealing with such small investment amounts?

Edit: formatting.

Hope this isn't too OT. While traveling I met a couple Dutch friends; they are now asking me for help finding an apt in nyc for a week. Considering I lived in nyc when we met, they figured I would be a good resource for this. Truth be told, I don't know how to do this in a safe way. They are fearful of scammers on Craigslist who have tried to have money wired. What other sites can I point them to? I figure airbnb is one, anything else? Also, how should they expect the payment to work--meaning will they be forced to put money up front and for what percentage?

  1.  Company A finds out about a large consulting job
  2.  Company A puts an ad out for someone to build it
  3.  Small company B (or a couple freelancers) puts in a proposal to Company A for $x.
  4.  Company A puts in a proposal for $x + $y

Now, the smaller guys are getting work and there is certainly nothing wrong with that. But small company B would like to put in their own proposal. Basically, how is Company A finding these jobs? Is it all referral based?